Cryptocurrency Analysis: Coins Rebound After Bloody Monday

Cryptocurrency Analysis: Coins Rebound After Bloody Monday

Introduction

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

The sell-off that was triggered by technical reasons, and has been accelerated by yesterday’s Chinese ban on ICOs ran out of steam and the major coins recovered some of the steep losses today in early trading. Bitcoin touched $4000 during the decline, completing a 20% correction off its all-time high. The currency is now back near the key $4400 support/resistance line, that could be a line-in-the-sand level for the current move. The short-term momentum might still support the bounce, as it is still slightly oversold, but the long-term picture still points a deeper correction. The $3800 and $3500 support levels are the most likely targets for the move, with strong support found at $3150 as well.

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BTC/USD, 4-Hour Chart Analysis

Yesterday’s biggest loser, NEO is up by the most today gaining more than 15% and recovering above crucial resistance, while most of the largest coins are up by less than 5%, and the whole segment is well below its all-time high. Ethereum that has been hit hard on Monday is back above $300, while Ripple and Ethereum Classic are trading north of $0.20 and $16 respectively. Monero and Dash are also up but remain heavily overbought regarding the long-term picture. We still expect more correction from the majors, so investors are still advised to be patient with new positions, although the less overbought currencies already look attractive here. Let’s look at details of the short-term setups.

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH testes the $285 level yesterday and rebounded strongly to trade between the $300 and $330 support/resistance levels today. The con is oversold short-term but still slightly overbought concerning the long-term picture. We expect more correction in the coming weeks, and better buying opportunities for investors below the $300 level, with support levels at $285, $270, $250, and $230.

Litecoin

LTC/USD, 4-Hour Chart Analysis

LTC touched $64 but recovered after the sharp correction and it is no trading near the $75 level, still well above the prior all-time high. The currency could still be headed towards the $56 level, as it remains long-term overbought, while the rising trendline is ahead as primary resistance just above $80. Below $64 and $56, further support is at $51.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash cut slightly below $300 yesterday, but it’s now up by 10% amid the broad rally, and the coin is among the relatively stronger ones short-term, despite the heavily overbought long-term position. The currency has strong support near $300 and $265, with the prior all-time highs being found even below those zones near $220. Long-term investors should still be patient, as a decline below $300 is still likely.

Ripple

XRP/USD, 4-Hour Chart Analysis

The break-out of Ripple remained intact despite the steep correction, and the coin managed to climb back above the crucial $0.20 level although the strong support/resistance zone near $0.22 is still ahead, and the declining consolidation pattern also provides resistance around $0.24. We expect limited downside movement from the currency, given the long-term setup, but more volatility and sideways trading are likely. In the coming period, with support near $0.18 and $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic has been very volatile during today’s rebound as it reached the $18 level couple of times after getting close to $16 yesterday. The coin is holding on to its break-out just like Ripple, but it is relatively weaker than its peers and that could warn of a pull-back to the prior long-term trading range between $13.50 and $16. That said, the long-term picture is still encouraging and investors could still buy the dips, anticipating a rally to new highs following the correction.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero fell more than 30% off its all-time high, touched the $100 price level yesterday, and rallied up to the key $125 support/resistance line today. The coin is oversold short-term just like its peers, but it remains strenuously overbought long-term. Below $100 strong support is found near $72 and around $58.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM is still virtually unchanged compared to BTC, as it recovered well together with the largest coin today. The coin remains in a broad range between 0.0000575 and 0.000075, with a promising long-term outlook. The currency is trading right at the 0.000065 support/resistance level, with more support at 0.000048 and strong resistance ahead at 0.00009.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO has been the most volatile coins following the Chinese ban, and it bounced back to $25 after trading as low as $16.50 during the crash. The coin still looks attractive at these levels, but more volatility is expected with a possible test of yesterday’s lows in the coming days. Resistance is ahead at $30 and near $44.

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Posted on 6:28 pm September 5, 2017.

I was def. a bit surprised to see another author recommending an ETH trade with a $400 profit target – I’m assuming the timelines for your projected corrections differ from the timeline for a proposed price reversal. Case in point per avoiding mixed investment timelines.

Posted on 9:53 pm September 5, 2017.

Your advice here seems to be in conflict with that of Dmitriy. Your recommendation here, in the BTC section, is:

“The short-term momentum might still support the bounce, as it is still slightly oversold, but the long-term picture still points a deeper correction. ”

At the same time, Dmitriy advises some 20 hours ago:

“The market is in strong bullish trend and we should try to catch a new price movement as quickly as possible. Pending orders for buy can be placed at 4310.00 level. … Profit target is at 5000.00 level and the main part of trading volume should be left for long run. ”

This was published on TradingView, not here, but still there is a direct link to Hacked.com right underneath the post and clearly you are both active here.

How should one navigate these conflicting recommendations? Do you somehow sync your advice, so that your followers don’t get into these conflicts?

Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More

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